To the Members of Panafic Industrials Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Panafic Industrials Limited (the Company), which . comprise the Balance Sheet as at 31st March 2016nd the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policy and other explanatory information.
Management’s Responsibility for the Standalone Financial Statements
The Company’s Board of Director is responsible for that estimated in section 134(5) of the Companies Act, 20B (the Act)’ with respect to the preparation of these and alone financial statements that give a true afraid view of the financial position, financial performance and cash flows of the Company in accordance with accounting principles generally accepted in India, including the Accounting Standards specified under Section 1BB of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the as at the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that an based on and prudent; and design, implementation and maintenance of internal financial control, that were operating effectively ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair wherever free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on the standalone Financial statements based on our audit.
We have taken into account provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Audit signified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves perfuming procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor consider financial control relevant to the Company’s preparation of the financial statement give a true and fair view order to design audit procedures that are appropriate in the circumstance ,audit also includes evaluating the appropriateness of accounting . policies used and the reasonableness of the accounting estimates made by Company’s Director well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provides for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view conformity with the accounting principles generally accepted in India of the state of affairs of the Company as t 31 March 2016; and its Profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order 120 (Order”), issued by the Central Government of India in terms f sub-section (I) of Section 4-3 of the Act, we enclose: the ‘Annexure A” a statement on the matters specified in paragraph 3 and 4 of the said Order.
As required by Section 43(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b) In our opinion, proper books of account as required by law have been kept by the Company, as appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow Statement dealt with by this report are an agreement with the books of account;
d) In our opinion, the for standalone financial statement comply with the Accounting Standard specified under section 33 of the Act, read wit Rule 7 of the companies (Accounts) Rules, 2014;
e) On the basis of written represent received from the directors are 31 March 2016, and taken on record by the Board of Directors, none of the directors is disqualified a3sI Monarch 2016, from being appointed as a director in terms of Section 134(2) of the Act;
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure B and
g) With respect to the other matter be included in the Auditors Report in accordance with Rule Il of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according (explanations given to us:
(i) The Company has disclosed the impact opening litigations on its financial position in its financial statements ;
(ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable loss and
(iii) There were no amounts which were require to be transferred to the Investor Education and Protection Find by the Company .
Annexure A to the Independent Auditors’ Report
i. There are no Fixed Assets in the company Hence, the provisions of paragraph) (a), (b) and (c) of the order are not applicable.
ii. As informed to us, the inventor which is in the nature of securities, been physically verified by the management during the year, either by actual inspection or on the basis of statement received from depository participants in expect of shares held as inventory. In our opinion, the frequency of verification is reasonable o material discrepancies have been notice on physical verification of inventory.
iii. The Company has not granted any loans, secured or unsecured to Companies, or other parties covered in the register maintained under section 139 of the Act According to the information and explanations given to us, we are of t e opinion that there are air ms or limited liability partnerships covered in the register maintained under Section 18 of the Act .
iv. According to the information and explanations given to us, in respect of loans, investments, guarantees and securities, the Company has complied with the provisions of Section 85 and 186 of the Act, to the extent applicable.
v. According to the information and explanations given to us, the company has not accepted any deposited the public as mentioned in the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Act and rules framed there under.
vi. The Central Government has not prescribed the maintenance of cost records un distribute of section 148 of the Act, for any of the services rendered by the company. Hence, the provisions of paragraph 3(vi) of the Order is at applicable.
vii. (a) According to the information and explanations given to us on the basis of our examination of records of the Company, amounts deducted/accrued in the books of account in respect undisputed statutory dues including Provident Fund, Employees State Insurance, Income-tax, Service tax, and other material statutory have generally been regularly deposited during the year by the company with the appropriate authorities. As explained to u the Company did not have any dues on account of Value added- Sales tax, Cess, Duty of Excise and Duty of Customs.
According to the information and explanations given to ms undisputed amounts payable in respect of Income tax, Provident Fund, Service tax and other material statutory years where in arrears as at B1 March 206 for a period of more than six months from the date they become payable,
(b) According to the information and explanations provided to there are no dues on account of Income;, Provident Fund and Service tax which have not been deposited with the appropriate authorities on account of disputes as at 31 March 2016.
viii. In our opinion, and according to the information and explanations give us the Company has not defaulted in repayment of dues to any banks and financial institutions. The Company did not have any outstanding du s to debenture holders during the ye ar.
ix. According to the information and explanations given towards, our examination of the records of the Company, no term loans have been obtained by the Company during the year. The Company has not raised any money by way of in the public offer or further public offer (including debt instruments).
x. According to the information and explanations given to u no fraud by the Company or on the Company by its officer s or employees has been noticed or reported during the course of our audit.
xi. According to the information and explanations given to the managerial remuneration has-been paid or provided in accordance with the requisite approvals mandated by the provisions section 97 read with Schedule Vo the Act.
xii. According to the information and explanations given to the Company is not a Nidhi Company. Hence the provisions of paragraph 3(xii) of the Order note applicable.
xiii. According to the information and explanations given to, us and on the basis of our examination of the records of the Company, there are no transactions with the related parties which are not in compliance with Section 117 and 188 of the Act and the details have been disclosed in the financial statements, as required, by the applicable accounting standards .
xiv. According to the information and explanations given to the Company has not made any preferential allotment of private placement of shares or fully or partly convertible debentures during the year under audit.
xv. According to the information and explanations given to us, and based on our examination of the better Company has not entered into each transactions with directors or persons connected with him. According paragraph 3 (xv) of the Order are not applicable.
xvi. The Company is already registered under Section: 115 of the Reserve Bank of India Act, 1934. The copy of such registration has been obtained.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Act
We have audited the internal financial controls over financial report Panafic Industrials Limited (the Company)’ as of 31 March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidant Note on Audit of Internal Financial Controls over Financial Reporting (the Guidance Note) issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detect of frauds and errors, the accuracy and completeness of the accounting records, and the timely prepare shareholder financial information, as required under the Act.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Company’s internal financial control over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Not the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section :143(1)of the Companies Act, 2013, to the extent applicable to an audit internal financial controls both applicable to an audit of internal financial contras both issued by ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable about whether adequate internal financial cont roster financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial control system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and equating the design and operating effectiveness of internal control based on the assessed r k. The procedures selected depend on the auditors judgment, in change the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion in Company’s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparatory in financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control over financial reporting those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded a necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (B) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition use, or disposition of the company’s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial control over financial report including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur aid not be detected . Also projections of any evaluation of the edictal financial control over financial reporting nature periods are subject to the risk that the internal financial control over financial reporting become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the company has, in all material respects, an adequate internal financial controls system over finance re o and such, internal financial control over financial reporting operating effectively as at B1 March, 206, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial controls Over Financial Reporting issued by the Institute }f Chartered Accountants of India.
For ROHIT SURI & ASSOCIATES
CHARTERED ACCOUNTANTS
FRN: 012259N
Sd/-
ROHIT SURI
PROPRIETOR
M. NO.91064
PLACE: NEW DELHI
DATED: 30-May-2016
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